Turkey Sees Slight Reprieve: Annual Inflation Rate Dips to 48.58% in October
- Turkey's annual consumer price index fell to 48.58 percent in October, according to official data discharge by the Turkish Statistical Institute (TUİK) on 4 November.
- With this figure, the reduction in annual inflation slowed as it was 49.38 percent in September and 51.97 percent in August.
- Inflation was 2.88 per cent compared to the previous month, 39.77 per cent compared to December 2023, and 62.02 per cent according to the twelve month averages.
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Turkey’s annual consumer price index fell to 48.58 percent in October, according to official data discharge by the Turkish Statistical Institute (TUİK) on 4 November.
With this figure, the reduction in annual inflation slowed as it was 49.38 percent in September and 51.97 percent in August.
Inflation was 2.88 per cent compared to the previous month, 39.77 per cent compared to December 2023, and 62.02 per cent according to the twelve month averages.
The main group with the highest annual increase was education with 93.66 per cent, followed by housing with 89.39 per cent, and hotels, cafes and restaurants with 62.09 per cent.
According to the main spending groups, the highest monthly increase was clothing and footwear with 14.32 per cent, followed by food and non-alcoholic beverages with 4.33 per cent.
Meanwhile, the Domestic Producer Price Index (D-PPI) increase 32.24 per cent annually and 1.29 per cent monthly.
On the other hand, according to the Inflation Research Group (ENAG), an independent group of academics and economists, the consumer price index increased by 5.57 percent in October and 89.77 percent annually.
The ENAGrup Consumer Price Index (E-CPI) increased by 5.57% in October, 2024.
E-CPI increased by 89.77% in the last 12 months
— ENAG (@ENAGRUP) November 4, 2024
“Annual increases in the rent and education groups, where backward-looking pricing behavior is particularly high, limit the fall in inflation. It takes time to eliminate rigidity, but developments in this regard are positive,” Finance Minister Mehmet Şimşek said.
In October, annual inflation fell by 26.9 points compared to May and reached 48.6 percent.
The annual increase in basic goods prices was 28.5 per cent, and in services with high inertia it was 69.8 per cent.
Especially in the rental and education group, where there is high back-pricing behavior… pic.twitter.com/uXCSsAUavq
— Mehmet Simsek (@memetsimek) November 4, 2024
The central bank has raised interest rates by 4,150 basis points since June last year, to 50 per cent, and has promised to tighten further in the event of a significant decline in inflation.